Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

He has actually made more than 10 calls in the last thirty minutes - not to go over the match but to keep revising his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later his forecast comes real, as India wins the match in a nail-biting surface.

"I have made $200 today," he says with a childish glee.

For more than 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates grow in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market deserves some $150bn a year. And much of that gambling cash is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these transactions include so-called "black money", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law forbiding internet gaming, there is nothing comparable here.

And overseas wagering business are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have actually signed up accounts with overseas companies.

"Legally you can get away [with this], as the law is unclear for online sports betting," states Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have been banned for 2 years after some players and group officials were condemned of repairing parts of the match at the behest of bookies.

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

"I don't mind paying some cash out my profits, as long as I can bet publicly," says our cricket gambler.

It would likewise open a substantial organization chance for licensed bookmakers and worldwide online wagering business to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals involved in gambling more transparent.

"If you work together with sports betting business, you will have a very reliable technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) people would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted money to position huge bets will never ever bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a tough idea to sell.

"Even though many individuals are associated with some sort of gaming - it's still a controversial concern for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their area.

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, at least a dispute has ignited around a subject - which previously was considered a taboo.